9th Sep 2015 06:32
LONDON (Alliance News) - Ryanair Holdings PLC Wednesday said it has raised its full-year profit guidance as it delivered stronger-than-expected peak summer traffic and prices.
The Irish low-cost airline said that it has raised its full-year net profit guidance by a quarter to fall between EUR1.18 billion and EUR1.23 billion, from its previously-guided range of EUR940 million to EUR970 million.
It said this was due to stronger-than-expected traffic in the peak summer period as its "Always Getting Better" programme brings in new customers at slightly higher air fares.
Traffic in the first half of the year grew 13%, Ryanair said, while fares were up over 2%. Traffic growth in the third quarter is now expected to be 15%, up from the previously-guided 13%, while third-quarter fares are anticipated to be flat, having been expected to fall at between 4% and 8% previously.
Ryanair did warn, however, that it will see downward pressure on fares and yields this winter as it grows in major EU markets such as Germany, at a time when competitors will begin to benefit from lower oil prices.
"As a "load factor active/yield passive" airline we have clearly benefited from favourable industry trends this summer including bad weather in Northern Europe, stronger sterling encouraging more UK families to holiday in the Mediterranean, reasonably flat capacity across the EU industry and lower prices for our unhedged oil," Chief Executive Michael O'Leary said in a statement.
"Being the airline industry we do not expect these favourable conditions will persist, and we would urge shareholders and analysts to avoid irrational exuberance while we continue to execute our very ambitious growth plans during what we expect to be very attritional and sustained fare wars across Europe this winter," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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